Entrepreneurial Business

Plan

I. Introduction
A hamburger (also called a beef burger, hamburger sandwich, burger or hamburg) is a sandwich
which is made up of of one or more cooked patties of ground meat in which is usually beef,
placed inside a sliced bun. Hamburgers are often served with lettuce, bacon, tomato, onion,
pickles, cheese and condiments such as mustard, mayonnaise, ketchup, relish, and green chile.
The term "burger" can also be applied to the meat patty on its own, especially in the UK where
the term "patty" is rarely used.
For the brief history of burger, there have been many claims about the starting point of the
hamburger. The first acknowledged report in a newspaper is from July 5, 1896, when
the Chicago Daily Tribune made highly specific claim about a "hamburger sandwich" in a
commentary about a "Sandwich Car:" "A well-known favorite, only five cents, is Hamburger
steak sandwich, the meat for which is kept prepared in small patties and 'cooked while you wait'
on the gasoline choice." According to Congresswoman Rosa DeLauro, the hamburger, a ground
meat patty sandwiched between two slices of bread, was first produced in America in 1900 by
Louis Lassen, a Danishimmigrant, owner of Louis' Lunch in New Haven, Connecticut. There
have been adversary claims by Charlie Nagreen, Frank and Charles Menches, Oscar Weber
Bilby, and Fletcher David. White Castle traces the foundation of the hamburger to Hamburg,
Germany with its invention by Otto Kuase. However, it achieved national recognition at the 1904
St. Louis World's Fair when the New York Tribune referred to the hamburger as "the innovation
of a food vendor on the pike." No certain argument has ever ended the dispute over invention. A
piece of writing from ABC News sums up: "One dilemma is that there is modest written history.
Another concern is that the spread of the burger happened largely at the World's Fair, from little

vendors that came and went in an instant. It is entirely likely that more than one person came up
with the proposal at the same time in different parts of the country."
II. Executive Summary
Banana Habit is a locally owned fast food restaurant which offers wide variety of Filipino
cuisines and desserts while its specialty is Banana Burger. The said fast food will be positioned
in Tagaytay City, Cavite.
Tagaytay City's name has two origins. The first is rooted in an ancient folk tale where a father
and son were hunting for wild boar when their quarry suddenly turned around and attacked them.
The boy shouted to his father "Taga itay! Taga itay!" (Hack it father, hack it!) The boy's shouts
echoed to the countryside and became a favorite tale of the locals and in the course of time, the
place came to be known as "Tagaytay". The second was recounted by Gen. Emilio Aguinaldo
himself in his Memoirs. A local "kainginero" was asked by Spaniard, "Como se llama este
sitio?" (How is this place called?), They did not, however, understand each other because of
language barrier. The locals son, getting impatient, cried out, "Taga itay! Taga itay!" and the
Spaniard replied "Ahh, Tagaytay!". Our Revolutionaries heavily used Tagaytay as a connectin
linkand secret passageway between Cavite and Batangas during the Philippine Revolution. Gen.
Emilio Aguinaldo and his army, in fact, captured the entire 72nd Battallion of the Spanish
colonial army after passing through Tagaytay en route to Talisay, Batangas.
Tagaytay's strategic location was punctuated even more the 11th Airborne Division of the U.S.
Army airdropped military back-up of the Ridge, and from there launched massive northward
drive to Manila, culminating in the liberation of Manila from the Japanese on February 3, 1943.
Tagaytay became a chartered city by virtue of Commonwealth Act No. 338 creating Tagaytay

City, the city charter has been amended thrice: first, by Commonwealth Act No. 397 approved on
September 6, 1938; second, under Republic Act No. 3622 of June 22, 1963; and third, by
Republic Act No. 4438 of June 19, 1965.
Tagaytay City is one of the vital tourist sites, which play a very significant role in the countrys
tourism industry. From the National and Regional points of view, Tagaytay City ranks very high
in tourism potentials due to its scenic attraction and available accommodation facilities that meet
international standards. Because it is very accessible and strategically near Metro Manila, which
is the main entry and exit point of the countrys local and international travellers, Tagaytay
remains one of the leading tourist areas in the country.
The main tourist attraction of Tagaytay is the captivating panoramic view of the natural beauty of
the Taal Volcano, which is the smallest volcano in the world and where two delectable rare
species of fish, the maliputo and tawilis are found. In spite of its nearness to Metro Manila,
Tagaytay has a unique rustic atmosphere and invigorating cool climate. This is the reason why
people do not only want to visit the place but prefer to hold seminars / conferences the city.
Complementing the natural endowment are several tourist establishments, which are attractions
themselves.
Banana Habit was only a research proposal submitted as a course requirement way back in 2013
and today, the founder decided to make the proposal a reality. The founder kept in touch with her
old friends in college to offer partnership that could help in putting up the business most
especially in the financial aspect. Banana Habit will be attracting new clients through a
combination of networking and monthly public promotion that introduces otherwise unreachable
segments of the population.

It is a sole proprietorship that will accomplish profitability by month eight and will have modest
profits by the end of year three. This plan is created to obtain a location for the initial launch of
this concept. The financing, in addition to the capital contributions from shareholders, will allow
Banana Habit to successfully open and expand through year two. The initial capital investment
will allow Banana Habit to provide its customers with a value-driven, entertaining experience
through the creativity of its management.

III. Component
The management of Banana Habit has a mission of providing a wide range of Filipino food in
affordable prices as its main tactic to attract and maintain customers. Going extra mile or beyond
the customers expectations is also one target of Banana Habit. The objectives for the first three
years of operation include:
a. To create a fast food restaurant whose primary goal is to exceed customer's expectations.
b. To increase the number of customers served by at least 20% per year through advanced
performance and word-of-mouth referrals.

c. To develop a sustainable fast food restaurant that generates value for their customers.
The founder is Rachelle Anne M. Palecpec, year 2013 graduate of BS in Business Administration
from De La Salle University who is currently taking up Masters in Business Administration in
Philippine Womens University. The founder is Workforce Reports Analyst in TeleTech, an
international Business Processing Outsourcing company which is one of the largest and highest
paid contact center worldwide. Rachelle manages Banana Habit as a whole and analyzes each
aspect that may affect the business. Rachelle built the team and motivates them to become more
passionate and involved with Banana Habit.
Below is the organizational chart of Banana Habit fast food.
Rachelle Anne Palecpec
Founder & CEO

Kenneth Asia
Chief Operating Officer

Fatima Nazareno
Head, Operations

Ruth Poloan
Head, Human Resource

Roelene Bulilan
Head, Accounting

Ruby Garces
Head, Food & Beverage

Querolyn Ballesteros
Head, Marketing

Jera Ramos
Head, Facilities

Kenneth Asia is the Chief Operating Officer of Banana Habit who is a Licensed Electronics
Engineer and has various work experience in Engineering field. Kenneth is currently working in

TeleTech as Workforce Scheduling Officer. He is responsible mostly in Operations including the

intra-day and daily routine and task of Banana Habit.
Ruth Poloan is the head of Human Resource Department. Ruth acts as a lead person in the
delivery of human resource services with particular duty for providing information to the
employees concerning policies and regulations, addressing a range of concerns and/or providing
general support, supervising the maintenance of records, files and databases of personnel actions,
evaluations, licensure, and tenure and assisting the CEO and COO in ensuring that personnel
functions conform to all appropriate regulatory requirements.
Roelene Bulilan is the Accounting Head who establishes financial status by developing and
implementing systems for collecting, analyzing, verifying, and reporting financial information.
Roelene achieves accounting operational objectives by contributing accounting information and
recommendations to strategic plans and reviews.
Fatima Nazareno as the Operations Head will lead and supervise the restaurant team for all
aspects of day-to-day running of stores as well as sales, customer service, quality control,
operations and provide effective line-management. Fatima will be responsible for the attainment
of their stores targets for all lines of business, planning, organizing, directing and coordinating
with the suppliers of resources of the restaurant for the efficient and profitable services of food
and beverages.
Ruby Garces is always present in the restaurant and works with the team to take orders, set, serve
and clear tables and deal with the exchange of bills and money. Ruby is an important member of
the team. She will have a contact with the customer during their dining experience, it is
necessary that Ruby is polite and courteous when welcoming customers into the restaurant,

during the service of the meal and answer queries or complaints from customers. Ruby leads the
team to ensure they provide polite and efficient service at all times to maintain the exceptional
standard of service and quality.
Querolyn Ballesteros acts as Marketing head who works on the demand that Banana Habit will
face and its competitors plus to spot potential customers. Querolyn needs to widen pricing
strategies with the purpose of maximizing the firm's profits or share of the market while ensuring
the customers are pleased and fulfilled. Moreover, Querolyn needs to oversee product
development or monitor trends that specify the need for new products and services.
Jera Ramos is the head of Facilties who maintains the buildings and grounds of Banana Habit,
directing staff and overseeing the upkeep of equipment and supplies. Jera needs to make sure the
buildings and grounds are maintained, which entails daily and weekly cleaning schedules as well
as determining and scheduling repairs, renovation projects, waste reduction improvements and
safety inspections. Jera is in charge of a budget and must negotiate with outside vendors for
supplies, repairs and other measures.
IV. Market Feasibility
Banana Habit location will range in size from 50 70 meter square and will seat from 15 25
guests. The first location will be on the larger end of this range. The location will feature its own
originality in selling burgers and other brand building attributes. Banana Habit will equip the
outlet with modern furniture and aim for cleanliness and an open feeling. The space selection
will be chosen based upon the following criteria:

Community size: minimum of 300,000 people within a radius of 8 kilometers.

Tourist destination.

Easy access.

Large percentage of teenagers in the community.

All of these qualities are consistent with Banana Habits goal of providing a top quality fast food
experience. Banana Habit wants "word-of-mouth" to be their best form of marketing, where
customers value their brand as something exciting and cannot wait to tell their friends and
neighbors.
Banana Habit will directly compete with several fast food joints along the main road in Tagaytay
with tourist spots nearby, including Mang Inasal, Jollibee, McDonalds, Greenwich and more.
See the picture below for the proposed logo of Banana Habit.

Heres the tarpaulin to be posted along roads:

Banana Habit offers affordable Filipino cuisines in affordable prices. See proposed menu below:

Banana Burger - the specialty of Banana Habit which is Php 75.00 each.

Below is the floor plan for the physical appearance of Banana Habit.

Marketing Strategies
With a marketing distribution strategy formed, Banana Habit will develop a promotion plan. The
promotion strategy in its most basic form is the controlled distribution of communication
designed to sell their food. In order to accomplish this, the promotion strategy encompasses
every marketing tool utilized in the communication effort. This includes:

Advertising. Banana Habit uses a tagline Make it a Banana Habit. Banana Habit will
post tarpaulins and banners from Bacoor, Cavite along Aguinaldo Highway on the way to
Tagaytay City, Cavite. Directions will be posted as well.

Packaging. Banana Habit will use native and unique style of packaging designed by the
management out of their creative minds.

Public relations. Banana Habit will sponsor different events in Cavite which is a good
way to introduce the business to the public.

Sales promotions. Discount vouchers can be purchased online which is one of the easiest
ways to catch the attention of potential customers. Of course, Banana Habit will use
social media.

Personal sales. Banana Habit believes that every customer is a treasure. Banana Habit
will make sure that each customer will become a Banana Habit advocate.

Demand and Supply Chain Management

Ordering stock is a very important factor that needs careful attention from the management as it
involves the arrival and delivery of the raw materials for the food preparation. Congestion with
the stocks will pull the business down that may lead to net loss. Moreover, raw materials are
perishable so it would be best to plan the ordering of stocks in order to serve the food fresh. The
CEO and COO are specialized in Capacity Planning and Process Improvement thats why it is
easy for them to analyze and plan in both short-term and long-term basis. They are excellent in
using different planning tools and basically, MS Excel. Below is the sample computation for
ordering stock using MS Excel.

Ordering Stock
This is an example of a spreadsheet to calculate the best time interval to order stock.
Scenario
Storage fits certain amount of raw materials and stocks.
Banana Habit orders stocks on a regular basis.
Each time an order is made for new stock, there is a fixed administrative cost.
Stocks are kept in stock until needed.
Keeping the stock incurs a cost due to capital tied up and warehouse costs.
The supplier of the stocks gives a discount on large orders.
Objectiv
e
Find the time interval to order stock which will result in the lowest Admin and Warehouse
costs.

Input Data
Cost of a single stock order :
Cost of keeping stocks in warehouse. (As a % of the stock value) :
Quantity of stocks used per day :
Admin cost each time new stocks are ordered :
Average quantity of stocks (As % of ordered quantity) :
Ordering Intervals to evaluate. (Expressed in Days) :
Suppliers first Price Break and Discount% offered :
Suppliers second Price Break and Discount% offered :

Php75
12%
10
Php25
0.5
2
200
750

1%
5%

Output
Ordering
Interval
In Days

Quantit
y
Per
Order

1
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
60

10
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300
320
340
360
380
400
420
440
460
480
500
520
540
560
580
600

Order
Value

Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php

750
1,500
3,000
4,500
6,000
7,500
9,000
10,500
12,000
13,500
15,000
16,500
18,000
19,500
21,000
22,500
24,000
25,500
27,000
28,500
30,000
31,500
33,000
34,500
36,000
37,500
39,000
40,500
42,000
43,500
45,000

Order
Discount

Orders
Per
Year

Php Php Php Php Php Php Php Php Php Php Php 150
Php 165
Php 180
Php 195
Php 210
Php 225
Php 240
Php 255
Php 270
Php 285
Php 300
Php 315
Php 330
Php 345
Php 360
Php 375
Php 390
Php 405
Php 420
Php 435
Php 450

365
183
92
61
46
37
31
27
23
21
19
17
16
15
14
13
12
11
11
10
10
9
9
8
8
8
8
7
7
7
7

Annual Admin
Cost

Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php

9,125
4,575
2,300
1,525
1,150
925
775
675
575
525
475
425
400
375
350
325
300
275
275
250
250
225
225
200
200
200
200
175
175
175
175

Annual
Ware
house
Costs

Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php
Php

45
90
180
270
360
450
540
630
720
810
900
990
1,080
1,170
1,260
1,350
1,440
1,530
1,620
1,710
1,800
1,890
1,980
2,070
2,160
2,250
2,340
2,430
2,520
2,610
2,700

Annual
Total

The
Best
Ordering
Interval

Php 9,170
Php 4,665
Php 2,480
Php 1,795
Php 1,510
Php 1,375
Php 1,315
Php 1,305
Php 1,295
Php 1,335
Php 1,225
Php 1,250
Php 1,300
Php 1,350
Php 1,400
Php 1,450
Php 1,500
Php 1,550
Php 1,625
Php 1,675
Php 1,750
Php 1,800
Php 1,875
Php 1,925
Php 2,000
Php 2,075
Php 2,150
Php 2,200
Php 2,275
Php 2,350
Php 2,425

Best
-

Explanation
Column A
Ordering Interval In Days
The first of these cells has the value 1 entered in it.
This is the smallest ordering period, which would require stock to be ordered every day.
The second cell picks the ordering interval from the Input Data table.
The third and subsequent cells add the ordering interval to the previous cell to create
a list of values of the same interval.
Column B

Quantity Per Order

This is the number of stocks which will need to be ordered.
Calculation:

Column C

Order Value
This is the value of the Order before any discount.
Calculation:

Column D

OrderingInterval * QuantityUsedPerDay

QuantityOrdered * CostOfstocks

Order Discount
The discount which can be subtracted from the order value.
The discount is only given on orders which are equal to or greater than the
Price Break values set by the supplier.
Calculation:

OrderValue * SupplierDiscount
The supplier discount is calculated using the =IF() and the =AND() functions.
If the OrderQuantity is equal to or above the first Price Break, but below
the second Price Break, then the first Price Break discount is used.
=C29*IF(AND(B29>=$G$24,B29<$G$25),$H$24,IF(B29>=$G$25,$H$25,0))
If the OrderQuantity is equal to or above the second Price Break,
the second Price Break discount is used.
=C29*IF(AND(B29>=$G$24,B29<$G$25),$H$24,IF(B29>=$G$25,$H$25,0))
If the OrderQuantity does not qualify for a discount, zero discount is used.
=C29*IF(AND(B29>=$G$24,B29<$G$25),$H$24,IF(B29>=$G$25,$H$25,0))

Column E

Orders Per Year

This is how many orders will need to be made based upon the ordering interval.
With an interval of 1, there will have to be 365 orders.
Calculation:

365/OrderingInterval
This calculation may give results which are decimal, such as 2.3
This decimal will cause problems, due to the fact that the number of
orders must always be a whole number.
The =CEILING() function has been used to 'round up' any decimals to
the next highest whole number.
=CEILING(365/A29,1)

Column F

Annual Admin Costs

This is the administration costs involved in making the orders.
Calculation:

Column G

Annual Warehouse Costs

This is the cost of keeping the stock in the warehouse.
It is based on the managers knowledge that on average the stock level is 50% of the
quantity ordered.
Calculation:

Column H

QuantityOrdered * AverageStockLevel) * stocksCost * WarehousingCost

=(B29*$G$21)*$G$17*$G$18

Annual Total
This is the full yearly cost of ordering the stocks, based upon how frequently the
orders are made.
It does not take in to account the actual costs of the stocks, as the manager only
wants to know what the lowest values for the overheads associated with ordering and
storing the stocks systems.
However, the Discount figure is taken into account as this can be used to offset some
of the overheads.
Calculation:

Column I

OrdersPerYear * AdminCost
=E29*$G$20

AnnualAdminCosts + AnnualWarehouseCosts - OrderDiscount

=F29+G29-D29

The Best Ordering Interval

This shows the Best ordering interval, giving the lowest annual overheads.
It compares the value in column H against the minimum value for all of column H.
If the two values match the word Best is shown, otherwise a dash is shown.
=IF(H29=MIN($H$29:$H$59),"Best","-")

Below is the representation of Demand vs. Supply Management

V. Financial Aspect
Banana Habit will use the personal savings, assets and investments of the management in putting
up the business to avoid liabilities such as loans. Below is the projected accumulated value of
their total financial figures including the expenses during the start-up year.

Banana Habit listed the estimated cash flow of the business during the start-up year.
Start-Up Requirements
Start-Up Expenses
50,000
Legal
1000
Brochures
3000
Insurance
0
Rent
0
Total Start-Up Expenses
54,000
Start-Up Assets
Cash Required
Other current assets
Long-term assets
Total Assets

200000
50000
40,000
290000

Start-Up Funding
Start-Up Expenses to
Fund
50,000
Start-Up Assets to Fund
100,000
Total Funding Required
150,000
Assets
Non-cash assets
Cash Requirement
Addt'l Cash Raised
Starting Cash Balance
Total Assets
Liabilities & Capital
Liabilities & Capital
Current Borrowing
Long-term liabilities
Accounts Payable
Other Liabilities
Total Liabilities

150000
0
100000
0
500,000
210000
0

0
0
0
0
0
0

Capital
Rachelle
Kenneth
Ruth
Fatima
Ruby
Jera
Querolyn
Total Capital

(Amount in Peso)

300,000
200,000
100,000
75,000
75,000
50,000
50,000
850,000

Banana Habit has a projected balance sheet as well.

Balance Sheet

Banana Habit
Assets

2015

2016

Current Assets
Cash
Accounts receivable
Inventory
Prepaid expenses
Short-term investments

600,000

Total current assets

600,000

Fixed (Long-Term) Assets

Long-term investments

40,000

Property, plant, and equipment

1,500,000

(Less accumulated depreciation)

(2,200)

Intangible assets

112,000
Total fixed assets

1,649,800

Other Assets
Deferred income tax
Other

600,000
Total Other Assets

Total Assets

600,000

2,849,800

Liabilities and Owner's Equity

Current Liabilities
Accounts payable
Short-term loans

Income taxes payable

Accrued salaries and wages
Unearned revenue
Current portion of long-term debt

10,000

Total current liabilities

Long-Term Liabilities

10,000

Long-term debt
Deferred income tax
Other

9,000

Total long-term liabilities

9,000

Owner's Equity
Owner's investment

850,000

Retained earnings
Other

500,000

Total owner's equity

Total Liabilities and Owner's Equity

1,350,000

1,369,000

{42}

Common Financial Ratios

Debt Ratio (Total Liabilities / Total Assets)
Current Ratio (Current Assets / Current Liabilities)
Working Capital (Current Assets - Current Liabilities)
Assets-to-Equity Ratio (Total Assets / Owner's Equity)
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity)

0.01
60.00
590,000

2.11
0.01